The investments from Tencent and CDC are valued at an additional US$70 million, TymeBank said in a statement.
The finalization of the investments is subject to normal conditions precedent and regulatory approvals.
Tyme, which has its roots in South Africa, is using the series-B funding to grow TymeBank locally and to fund GOTyme in the Philippines, where it has secured a digital bank license in partnership with Filipino conglomerate Gokongwei Group and said it may also expand into other markets.
This is the second time that Tyme has successfully concluded a capital raise in one year. Earlier in 2021, it secured US$110 million from a private equity fund managed by Apis Partners LLP and JG Summit Holdings.
The first part of Tyme’s series-B raise was concluded earlier this year when it secured US$110 million from Apis Growth Fund II, a private equity fund managed by Apis Partners, and the Gokongwei’s JG Summit Holdings.
“The investments will enable Tyme to use its digital infrastructure to accelerate the roll-out of financial services to TymeBank’s historic mass-market customer base. The two investors’ capital and expertise will also be used to improve Tyme’s ability to manage risk and support Tyme’s expansion into markets where CDC has a presence,” the bank said.
African Rainbow Capital remains Tyme’s majority shareholder.
TymeBank has acquired four million customers in 32 months since founding and has partnered with organizations like Pick n Pay and Boxer as well as the Zion Christian Church.
It also recently partnered with TFG (The Foschini Group) to diversify its customer base into higher-income segments and to provide a “viable pathway to responsible consumer lending”.
TymeBank has already acquired four million customers in South Africa and been expanding its product offering, launching a buy-now-pay-later credit product called MoreTyme and several other value-added services.
It currently has R2.8 billion (US$176.5 million) in retail deposits from customers sitting in its bank accounts and has attracted R33 billion (US$2.08 billion) in gross deposits since March 2020.
“This is a very welcome investment from Tencent and CDC. It is a clear vote of confidence in our digital banking offering as well as our leadership teams in South Africa, Singapore, and the Philippines,” said Coen Jonker, co-founder of Tyme.